PJT Partners (US:PJT)2023-02-23 16:00Financial Performance - Total Revenues for the year ended December 31, 2022, were $1,025.5 million, a 3% increase from $991.9 million in 2021[197] - Advisory Fees increased to $823.5 million in 2022, up $60.8 million or 8% compared to $762.7 million in 2021, primarily due to higher restructuring revenues[197] - Placement Fees decreased to $192.9 million in 2022, down $23.8 million or 11% from $216.7 million in 2021, attributed to a decline in corporate placement revenues[197] - Net Income attributable to PJT Partners Inc. was $90.5 million in 2022, a decrease of 15% from $106.2 million in 2021[195] Expenses - Compensation and Benefits expenses rose to $669.1 million in 2022, an increase of 5% from $640.0 million in 2021[195] - Total Expenses for 2022 were $824.0 million, reflecting a 7% increase from $772.5 million in 2021[195] - The company experienced a significant increase in Travel and Related expenses, which rose by 178% to $25.2 million in 2022 from $9.1 million in 2021[195] - Total expenses for the year ended December 31, 2022, were $824.0 million, an increase of $51.5 million (6.7%) compared to $772.5 million for 2021, primarily due to higher Compensation and Benefits and Travel expenses[198] Taxation - The provision for taxes increased by 24% to $36.7 million in 2022 from $29.5 million in 2021[195] - Provision for Taxes for the year ended December 31, 2022, was $36.7 million, resulting in an effective tax rate of 18.2%, up from 13.4% in 2021, driven by increased permanent differences related to equity-based compensation[199] Client Metrics - The total number of clients increased to 405 in 2022 from 399 in 2021, while the number of fees of at least $1 million from client transactions rose to 187 from 159[196] Cash and Investments - As of December 31, 2022, cash, cash equivalents, and short-term investments totaled $223.5 million, an increase from $200.5 million in 2021[207] - Total accounts receivable, net of allowance for credit losses, increased to $317.8 million as of December 31, 2022, compared to $289.3 million in 2021[208] - The company had a remaining repurchase authorization of $173.7 million under its $200 million share repurchase program as of December 31, 2022[215] - The amount due under the tax receivable agreement was estimated at $30.3 million as of December 31, 2022[221] Compliance and Risk Management - The company is in compliance with debt covenants under its revolving credit facility as of December 31, 2022[205] - The company actively monitors its regulatory capital base to ensure compliance with minimum capital requirements[211] - The allowance for credit losses was $1.9 million as of December 31, 2022 and 2021[237] - The company does not engage in significant market risk or credit risk due to its non-capital-intensive business model[235] - Cash and cash equivalents are primarily held at four major financial institutions, with no material interest rate risk identified[236] - The company has not entered into any transactions to hedge exposure to foreign currency fluctuations[239] - The company assesses potential risk of forfeiture and records provisions for forfeitures as necessary[233] - Compensation costs related to equity-based awards are expensed over the requisite service period[232] - The company is exposed to exchange rate risk, particularly with currencies such as the pound sterling, euro, Hong Kong dollar, and Japanese yen[239] - The company maintains an allowance for credit losses that reflects current expected credit losses based on available information[237] Other Comprehensive Income - For the year ended December 31, 2022, the impact of foreign currency fluctuations resulted in losses of $5.3 million in Other Comprehensive Income[239] - Recent accounting developments and their impact on the company can be found in the financial statements[234]